Tax to GDP ratios

Korea is in the lower rank of OECD countries in respect of size of tax to GDP ratio with a ratio of 25.1% of GDP in 2010, 8 percentage points below the OECD measure of 33.8%. The ratio rose from 22.6% in 2000 to 26.5% in 2007 and 2008 before falling back. In 2011, there was an increase to 25.9% of GDP.

Figure 1: Tax revenue as percentage of GDP 2000 to latest available data

Tax structures

The main observations for Korea are:

• Revenue from personal and corporate income taxes was 6.5% of GDP in 2000 and 7.8% in 2011. The 2010 figure of 7.1% was well below the OECD average of 11.3%.

• The tax ratio for Social security contributions rose from 3.8% in 2000 to 6.2% in 2011, but the 2010 measure of 5.8% was well below the OECD average of 9.5%.

• The tax ratio for Taxes on goods and services was stable at 8-9% of GDP over the period and at 8.5% in 2010 was below the OECD average of 11.0%.

• Property tax revenues were 2.9% of GDP in 2010, more than 50% above the OECD average of 1.9%.

Figure 2: Tax revenue main headings as percentage of GDP, 2000, 2007, 2010 , 2011

• OECD averages are not available for 2011 as 5 OECD countries have not provided data for that year.
• More comparative information about OECD member countries is contained in the tables linked within the following webpages:
  • Tax revenue trends: tax ratios changes between 2007 and 2011
  • Tax revenue trends: tax ratios changes between 1965 and 2010
  • Tax structures: latest position (2010)
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